If this is your initial year in business, then this makes sense.
If you are not using some type of software for your record keeping, I would recommend you do so. QuickBooks would be a good choice. Using a software such as this, you would be able to print out a balance sheet and then compare it to your Schedule L on the tax return.
However, you indicate that all profits were distributed.
Are you taking a salary? If not, you definitely should be looking into this, as this is a hot topic and a priority review program for the IRS.
This forum is not conducive to determining what is a "reasonable" salary, this is only a recommendation that you should probably considered taking a salary.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
